Alameda’s Sam Trabucco To Forfeit $70M In FTX Settlement

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As an analyst with over two decades of experience in the financial industry, I find this settlement between FTX and Sam Trabucco to be both intriguing and somewhat predictable, given the interconnected nature of FTX and Alameda Research. The relinquishment of luxury assets such as yachts and prime real estate, combined with the forfeiture of $70 million in claims against FTX, is a clear indication that the parties involved are eager to avoid a prolonged legal battle.

Sam Trabucco, the previous joint CEO of Alameda Research, is set to transfer the ownership of two luxury apartments in San Francisco valued at approximately $8.7 million, a 53-foot yacht, and relinquish his $70 million worth of claims against FTX. In simpler terms, Trabucco will give up his properties and forfeit his $70 million claims on FTX.

This settlement, made between bankrupt FTX, FTX Digital Markets, and Trabucco, was presented on Monday. The agreement, reached through fair and independent negotiations, offers substantial benefits to both parties’ stakeholders without the need for a lengthy court battle as stated in the settlement paperwork.

Alameda’s co-CEO $70M Claim Against FTX Dismissed

Previously associated with Sam Bankman-Fried, Sam Trabucco has consented to hand over his possessions, which include his yacht and two San Francisco apartments, to FTX’s creditors. Trabucco, who held a co-CEO position at Alameda, purchased the 53-foot yacht for $2.51 million in March, only months before departing from Bankman-Fried’s hedge fund. Additionally, the court filing indicates that Trabucco will relinquish two apartments he bought in San Francisco for a total of $8.7 million in 2021.

FTX has settled with Trabucco

1) 2 apartments ($8.7m)
2) 53-foot Yacht ($2.5m)
3) Disallowed Customer claims ($70m)

Trabucco received $40m within 2 yrs before petition date

— Sunil (FTX Creditor Champion) (@sunil_trades) November 11, 2024

 

In a recent agreement, Trabucco has chosen to transfer approximately $70 million worth of claims he filed against FTX, effectively canceling these claims. Notably, FTX and Alameda Research – both ventures spearheaded by Sam Bankman-Fried – were jointly overseen by Trabucco and Caroline Ellison.

The relationship of the company with FTX became particularly noticeable following FTX’s collapse. Trabucco had already resigned as co-CEO in August, mere months before the FTX and Alameda implosion. His statement at the time was “I just bought a boat,” upon announcing his resignation.

FTX’s Complex Web: Another Piece of the Puzzle

As an analyst, I find myself detailing a significant development that occurred in June 2023. Trabucco took the step of filing claims amounting to $70 million against FTX, Alameda Research, and associated entities.

As per the agreement reached on Monday, Trabucco is set to hand over the entirety of his $70 million worth of claims to the creditors. Furthermore, these claims will be officially declared invalid and removed from the records.

In October, a U.S. bankruptcy court sanctioned FTX’s restructuring proposal, paving the way for clients to recoup funds approximately two years after the company’s downfall. This arrangement permits 98% of creditors to get back 118% of their claim worth in cash. Yet, some creditors expressed apprehensions over receiving money instead of digital currencies.

Following several petitions for bankruptcy, FTX has initiated lawsuits to recover funds for its financially strapped creditors. Lately, it has taken legal action against Binance and its ex-CEO Changpeng Zhao, alleging fraud and manipulation of the market. The lawsuit claims that a 2021 share buyback agreement between the companies was deceptive, worsening FTX’s already precarious financial state.

As a researcher reporting on the matter, I’d put it this way: In my investigation, I found that FTX Estate has taken legal action against investors such as Anthony Scaramucci’s SkyBridge Capital. The aim is to retrieve investments that FTX deems unwise. This litigation strategy by FTX is geared towards maximizing recoveries for creditors, avoiding drawn-out and expensive court trials.

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2024-11-11 23:49